On September 12,Ryan Company sold merchandise in the amount of $5,800 to Johnson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.
-Johnson uses the periodic inventory system and the net method of accounting for purchases.The journal entry that Johnson will make on September 12 is:

Question

Quizplus · Accepted Answer

The journal entry for Johnson Company on September 12 would be a debit to Purchases for $4,000, a credit to Accounts Payable for $5,696 ($5,800 less the 2% discount of $104), and a credit to Inventory for $800 ($4,000 cost of items sold). Option B is the only choice that reflects these transactions.

On September 12,Ryan Company Sold Merchandise in the Amount of $5,800